Discuss the procedures of issuing shares at a premium. How does the Companies Act provide for application of 'Receipts' from premium?

Issuance of a share at a premium

 
A Company can issue share at a premium having permission from the Securities and Exchange Commission. A share premium account is to be opened and the amount of premium to be transferred to the share premium account

Application of premium received on issue of shares:

A share premium account is to be opened which can be used for the following:
i. Un-issued share capital to be issued to the member as fully paid Bonus share.
ii. To write off preliminary expenses.
iii. To write off discount, commission and expenses on issue of share or debenture of the company.
iv. To pay premium payable on redemption of redeemable preference share or debenture of the company.